Realtors turn commercial space into residential

Q: What is the reason that the realtors are turning commercial space into residential?

Abhimanyu Khan, Bangalore

13th May 2013

Real estate News in Bangalore

real estate market

bangalore realty

residential real estate

Follow Discussion

Also see discussions for

Bangalore Real estate News Real estate News in Bangalore

Replies (5)

Residential property market is relatively in better position and even more developers trending towards residential projects as customer advances is a better option rather than going for private equity partner induction or expensive loans.

Mahi garg, Bangalore

14th May 2013

Comment

According to managing director, corporate finance at Jones Lang LaSalle, in residential market, the cash flow situation is much better than commercial segment. Moreover, now residential projects work on negative working capital and therefore it makes sense for a developer to focus on this segment.

Afzal Khan, Bangalore

14th May 2013

Comment

n a recent report by property consultant Cushman and Wakefield, total net office space absorption across eight Indian cities has gone down by 37 percent from a year ago at 3.6 million square feet in the first quarter of 2013. However, fresh supply continued to rise 18% to 7.9 million sq ft with 3% increase in vacancy rates to 19.6%.

Sreya Khan, Bangalore

14th May 2013

Comment

Builders are also finding it easier to work on housing projects, given the self-financing ability of residential projects through end-users advances compared to commercial developments.

Madhav Deb, Bangalore

13th May 2013

Comment

Real estate developers are facing difficulty to sell office space in Mumbai because of the the poor sales and falling rentals in this segment, so a number of builders are converting their commercial projects into residential ones.

Santosh TR,

13th May 2013

Comment